U.S. CPI Meets Estimates, Rising 0.2% in October; Bitcoin Moves Above $89K

As an analyst with over two decades of experience in the financial markets, I must say that the October CPI data release for the U.S. was as predictable as a clockwork. The market had been expecting a 0.2% rise month-over-month and year-over-year, and that’s precisely what we got.

The inflation figures for October in the United States aligned perfectly with economists’ predictions, causing bitcoin prices to edge closer to $90,000 once more.

In October, the Consumer Price Index (CPI) increased by 0.2%, contrary to predictions for no change and equal to the rise seen in September, as stated in a government report released this morning. On an annual comparison, the CPI increased by 2.6%, meeting expectations and slightly surpassing the 2.4% increase from September.

In simpler terms, the Core Consumer Price Index (CPI), which doesn’t account for fluctuations in food and energy prices, increased by 0.3% compared to predictions in October. This is consistent with the increase seen in August. On a year-over-year basis, the Core CPI was 3.3%, matching expectations from both September and October.

The value of a bitcoin (BTC) increased, reaching approximately $89,500. Over the last seven days, it has risen almost 30%.

As an analyst, I find it noteworthy that since the U.S. Federal Reserve initiated its easing cycle in September, they have reduced the federal funds rate by 75 basis points. This move, coupled with a more accommodating monetary policy across most Western central banks and the recent election of a crypto-friendly president (Donald Trump), appears to be driving the surge in Bitcoin’s price towards unprecedented highs.

As per CME FedWatch, the likelihood of a 0.25 percentage point interest rate reduction at the Federal Reserve’s upcoming meeting in mid-December was approximately 58%, before today’s data release. However, following the data, these odds have increased to 69%.